price down icon0.77%   -0.60
after-market  After Hours:  76.78  -0.10   -0.13%

Why is Starbucks Corp. (SBUX) Stock down?

01 May, 2024:

Starbucks Corp (SBUX) stock declined by 15.88% following the release of its first-quarter results. The coffeehouse chain reported disappointing revenue and earnings per share (EPS) figures, coupled with a decline in same-store sales, particularly in China.

  • First-Quarter Results: Starbucks reported a 4% decline in same-store sales, primarily driven by a 6% decrease in volumes, partially offset by a 2% increase in prices. Notably, same-store sales in China plummeted by 11%, indicating weak demand in a key market. Management expressed disappointment with the results, attributing them to a challenging operating environment.
  • Analyst Downgrade: In response to the first-quarter results, a Deutsche Bank analyst downgraded Starbucks stock from Buy to Hold and lowered the price target from $108 to $89. The downgrade reflected concerns about the company's performance and outlook in light of the disappointing earnings report.
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